After hearing neighbor concerns, the alderman decided that The Out Hotel Chicago's design did not fit in the neighborhood, she said.

"The alderman would like them to look at other locations in the neighborhood and change the design to be more cohesive," Duffy said, adding that there were too many rooms in the plan.

Parkview Developers' Ian Reisner said in an email that he planned to go back to the drawing board to make The Out Hotel Chicago work at the location. Previously, Reisner said he needed a certain amount of rooms to make the hotel economically viable.

And while the project had supporters — including businesses that hoped the hotel would revive Boystown as a gay destination — many neighbors still said the building was too big and would "destroy" the look of the street.